EDF Energy to pay £40 refunds to vulnerable customers and switch them to cheapest deal

EDF Energy has promised to automatically refund elderly customers the difference between its cheapest tariff, meaning 150,000 pensioners will be eligible for refunds averaging £40 this year.

The announcement comes after EDF Energy was forced to repay £4.5million - including £3.5m to its most vulnerable customers - after an Ofgem investigation found evidence that customers were not always given an accurate estimate of the savings they could make by switching.

Pledge: EDF Energy has promised to refund customers who are not on its lowest tariff.

EDF Energy said the latest move was 'voluntary' and in addition to the £4.5million penalty.

The company said it will make an average refund of £40 to around 150,000 customers. If they are not on the cheapest tariff then the difference between this charge and their own bill will be deducted from a bill before next winter.

The gas and electricity supplier has also promised to automatically apply is cheapest rate to these customers as
well as direct debit discounts, regardless of how they pay.

EDF
chief executive Vincent de Rivaz, said: 'If the most vulnerable and
elderly customers are not participating in the market they are not
getting the benefits of competition. Our step means that even if they do
not actively switch, they will get our best prices.'

The
energy supplier also announced that if a rival supplier brings out a
product which is £1 or more a week cheaper based on average use then it will
not apply a termination fee if they customers choose to leave.

To qualify for a rebate customers must already receive the Warm Homes Discount that is available to low-income and vulnerable households.

The discount is a £120 payment from energy suppliers as part of a Government-led scheme to those pensioners regarded as 'vulnerable', typically anyone who only receives the guarantee credit element of pension credit.

Gillian Cooper, head of energy retail at Consumer Focus, said: 'EDF Energy’s commitment to offer the cheapest-price for those in need is a welcome move, which should benefit thousands of its customers.

'However, while a positive step, only older people will feel the benefit as the information provided by the Government only relates to those of State Pension Age.

'There are many other vulnerable households who are facing tough choices between cutting back on their energy or other essentials to make ends meet.'